VMware Drops Plans to Launch Joint Cloud Venture with EMC

VMware said on Monday that it will no longer be part of a cloud services joint venture called Virtustream with EMC which was expected to launch in Q1 2016. VMware made the announcement in a one-line statement in a regulatory filing.

The Virtustream announcement has been blamed for contributing to a 25 percent decline in VMware share value over the last two months, according to a report by the Re/Code. It was supposed to be a part of the acquisition of EMC by Dell.

Shareholders in EMC and VMware were displeased with the plans for the joint venture, calling it a “dumping ground” for money-losing assets, Re/Code said.